PIA sale: Employees, army company enter race for Pakistan’s flag carrier
Deadline for PIA privatisation bids extended to June 19
DUBAI: Pakistan International Airlines (PIA) has attracted fresh interest from within and beyond its ranks as the national flag carrier heads towards a critical privatisation deadline on June 19 (Thursday).
Employees of PIA and military-backed Fauji Fertilizer Company Limited (FFC) have officially joined the bidding process, according to the Privatisation Commission.
The joint bid from employees was submitted by Hidayatullah Khan of the People's Unity and Aqeel Siddiqui of the PIA Senior Staff Association. The staff consortium is calling on the government to grant them preferential consideration, arguing their bid is driven by a commitment to safeguard jobs and turn the airline around.
Army firm’s interest
Fauji Fertilizer Company, Pakistan’s largest fertiliser producer and part-owned by the army-run Fauji Foundation, has also filed an Expression of Interest and prequalification documents. The company, listed on the Pakistan Stock Exchange, confirmed plans to carry out full due diligence before taking further steps.
At its June 13 board meeting, FFC approved the move, aligning it with broader IMF-backed reforms. The government is aiming to offload 51–100% of PIA to meet the requirements of a $7 billion bailout programme.
PIA privatisation
Last year’s privatisation effort collapsed when only one bid worth Rs10 billion ($36 million) was received – well below the Rs85 billion ($305 million) threshold. In preparation for this round, authorities restructured PIA’s finances, transferring nearly 80% of its debt to the government to improve appeal.
Among other interested parties are major business players like the Yunus Brothers Group and Arif Habib Group, according to industry insiders. The government has also eased tax barriers on aircraft leases, hoping to attract stronger bids.
Signs of recovery
PIA reported an operating profit of Rs9.3 billion ($33.1 million) in April – its first in 21 years – driven by cost-cutting reforms and the removal of unprofitable routes.
The carrier resumed European flights in January and is seeking to re-enter the UK market, positioning itself for future growth under new ownership.